Industry News

California real estate falls further out of reach

Income gap widens for median-income households

California households, with a median household income of $53,840, fall $70,480 short of the qualifying income needed to purchase a median-priced home in the state, according to the California Association of Realtors Homebuyer Income Gap Index report for the second quarter of 2005. A median-priced home in California cost $530,430 in the second quarter, the association reported. The index is a quarterly analysis of the difference between the median household income and the qualifying income needed to purchase a median-priced, single-family home for the state and for select regions within the state. The HIGI is calculated with the same assumptions used to generate the association's monthly Housing Affordability Index: a 20 percent down payment and a monthly payment for principal, interest, taxes and insurance that is no more than 30 percent of a household's income. The Homebuyer Income Gap Index for California increased 28.3 percent during the second quarter of 2005 compared to the seco...

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